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Orix—Beyond
Comedy? Leasing News has
contacted the Orix PR department.
We don't expect an answer back from them regarding the following stories: http://www.leasingnews.org/archives/October%202003/10-06-03.htm#orix Here are what readers have to say: THIS ORIX THING BEYOND
COMEDY...... WHAT ARE THE OWNERS
/ DIRECTORS OF ORIX THINKING? ALL THIS TEAM DID
WAS DESTROY THE SALES FORCE THAT WAS IN PLACE AND DESTROY 30 YEARS OF
CUSTOMER RELATIONSHIPS AND COLLECT OUT THE VALUE OF THE PORTFOLIO. NOW THAT THE COLLECTION
IS COMING TO A CLOSE, THESE GUYS ARE OUT WOW!......WHO'S BRAIN STORM
WAS THIS (?) ANYBODY WHO KNEW ANYTHING ABOUT THIS BUSINESS KNEW WHAT
THEY WERE UP TO DAY ONE, INCLUDING SOME OF THE BEST SENIOR MANAGEMENT
IN THE BUSINESS. YA KNOW!..... WE
CAN NEVER EVER CONFUSE "CORPORATE DECISIONS" WITH "BUSINESS
DECISION". A "CORPORATE DECISION" IS ALWAYS MADE BY PEOPLE
WHO DO NOT DEAL DIRECTLY WITH THE PROBLEMS TO BE SOLVED. A "BUSINESS
DECISION" ARE MADE BY PEOPLE THAT OWN THE COMPANY WHO DEAL WITH
ALL THE COMPANY PROBLEMS AND MAKE ALL THE DECISIONS. THIS ORIX THING IS
A JOKE AND VERY SAD FOR ALL THE PEOPLE THAT DEDICATED THEIR CAREERS
TO ORIX RUSSELL N. BENSON MARUKA U.S.A. INC. 400 COMMONS WAY ROCKAWAY NJ 07866 (973) 983-1000, EXT.
219 E-MAIL: RUSSELLSR@AOL.COM Orix The rag tag Battle
Star Galactica of leasing... The Palitz family went where no one wanted to go... There were a number
of decisions made over the years that led to the current state: 1) The decision to
hire "cronies" over qualified people... to avoid fees. 2) The decision to
hire "bank" leasing reps a couple of years ago who had a tendency to work
the "credit team" side of the deal rather than the "customer side"
in "storied credit" situations. They were used to "selling rate" and it
was a tragic mistake made by the big ticket side... 3) The decision to
close so many offices and consolidate operations to Atlanta There are several
external pressures that had a tremendous impact: 1) 9-11 had a direct
impact on ORIX USA as they had many offices in the towers. 2) The Japanese economy... 3) Some top managers
were recruited away at crucial times. Anonymous __ I regularly receive
your newsletter via e-mail and have enjoyed the variety and candor of your
postings. However, I must take
offense at parts of the recent article you
published concerning Orix USA (Orix USA Floundering-Holmes
Going, Going....). In this piece
you state, "The current failing at ORIX reportedly
are not Holmes's fault. The Credit Alliance portfolio is losing
big money, the original Palitz brothers had a way of moving money around
to make the company look good on paper and after they sold and left the
problems didn't surface until the economy took a dive." I feel compelled to
add some counterbalance to that overly broad assessment. Since it has been
almost 8 years since I left Orix, I am not well versed in their current internal
problems. I do know however,
what the company's business was like
during my 16 year tenure at the firm as one of their top salespeople. The Palitz family was brilliant in their appreciation and understanding of
companies like Credit Alliance and the role they played in the marketplace. When banks or other monolithic financial institutions turned their backs
on the middle market and some of the so-called "dirty" industries like construction,
waste, and transportation, Credit Alliance and Leasing Service were
there to offer a valuable service to the core industries of America.
Perhaps we weren't the cheapest rate in town, but we were one of the most
innovative and flexible groups around.
We didn't credit score people
or companies to determine their creditworthiness, rather we looked at what
they were buying, their payment history on similar debt, and what type of
character they possessed. Yes,
we actually got to know our customers first
hand in order to determine if they were "good guys" or "bad guys". Sounds overly simplistic to some, but it worked!
My guess is that
the problems began to develop when the decision was made to eliminate many offices and
the hard working employees who serviced those regions.
The formula for success
implemented by the Palitz family and its successors was undone by the lack
of hands-on direct contact with their customers.
Back then our customers
paid us before they paid almost anyone else because they knew that they had
a relationship with myself or others in the company. They would not take
the chance that they would jeopardize that relationship through default. In addition, I find
it hard to fathom that the problems you say are surfacing now once
the economy took a dive were left behind by the Palitzes. If memory serves
me they were out of the Credit Alliance picture by the late 80s. I know I had a hard time structuring any deals
that went beyond 60 months so I doubt
that any of the deals they were responsible for extended this far into the
future. It bothers me that people
outside the group would feel comfortable
criticizing an organization that had an excellent reputation during
its heyday and which, in essence, is no longer around to defend itself. Yours truly, Tom Tornee' TTornee@NFB.COM Sales Manager North Fork Equipment
Leasing 99 Jericho Turnpike Jericho, NY 11753 516-333-4723 516-333-5033 fax -- In a recent article
concerning the rumors around Jay Holmes at Orix, you made reference that
the Palitz brothers had moved money around and that had cause some of the
losses when the economy had problems.
I would like to point out that the
Palitz brothers retired from Orix 15 years ago.
Since most deals they did
were under 5 year transactions, I don't think anything they did would have
much effect of the losses taken in the past 5 to 10 years. By the way, I certainly
enjoy being one of your readers. Mike Leonard --- Both Mike Leonard,
who was manager of the Atlanta Transportation Division, and Tom
Tornee, who was a salesman in upstate New York, are good guys. I agree with the essence of what both have told
you. I thought that your
critique on the Palitz brothers was overdone. While they were gone
for years before the problems hit ORIX, the ORIX management was primarily
trained by the Palitzes. Any
tricks of the trade that the Palitzes
knew about were passed on to the management.
I think, however, that
the Palitzes should take no hit on the problems at ORIX. I believe that Jay Holmes was never interested
in fixing ORIX, but rather remaking
it in his image. That is why he let go all the old ORIX managers, changed
the name, closed every office and re-made the company in Atlanta. Why, for instance, would he start a municipal leasing operation,
when they did not need tax shelter?
How did he think that his "bigger
deals, better credits and higher rate" approach work, and did he think
it was a unique business model? My
opinion? With the Japanese economy
in a serious state, I think Holmes pushed the right buttons to force
the Japanese to protect their foreign crown jewel, Credit Alliance. Jay's approach was heavy-handed and he had his
mind set on what he wanted
to do and nothing was going to stop him. ( name with held ) I agree current management
needs to take the rap, should Jay be the fall guy, who
is really pulling the strings. ORIX Sato or Moss? You have stirred
up a hornets nest. One thing to expect, the Teflon Don (Gary Gussoff) will survive. (name with held )
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